Money Management

It doesn’t always pay to keep cable TV service. Read on to see if it’s time for you to cancel. [[{“value”:”

An estimated 72.2 million people have cable, says Allconnect. That might sound like a big number, but it’s actually down from 98.7 million in 2016.

Given that there are many low-cost alternatives to cable, like streaming services, it’s getting harder to make the case for spending all of that money. Cable subscribers typically pay anywhere from $20 to $145 a month, whereas some streaming services — namely, Netflix with ads — start at just $6.99 a month.

So if you’ve taken to watching streaming content more so than cable, then cutting the cord is an easy call. But here are three other reasons to consider saying goodbye to cable as soon as possible.

1. You have absolutely no savings

Last year, SecureSave reported that 63% of Americans could not cover an unplanned $500 expense. If you have less than $500 in your savings account, or, worse yet, $0 in savings, then you should not only cancel cable, but immediately hit pause on other non-essential expenses until you have at least a little money in the bank.

If you don’t have any money on hand for emergency expenses, you risk being forced into expensive debt the moment your next surprise bill arrives. So if your savings situation is dire, cancel cable for now. You can sign up again once your bank account balance is looking a bit better.

2. You have debt you desperately want to pay off

We just discussed the fact that not having emergency savings could immediately lead to debt. But if you’re in debt already, then it’s best to cancel cable so you can use that money to pay it off.

Every single day you carry a credit card balance is a day you rack up more interest on it. And even a seemingly small balance can cost you a lot over time.

In fact, say you owe just $500 on a credit card with a 20% APR. If it takes you 12 months to pay it off, you’ll lose $56 to interest.

And if you’re thinking that’s not a lot of money, consider that it’s about one-tenth of your starting balance. Also, if you can’t pay a $500 credit card bill by tapping your savings, it means you probably don’t have a lot of savings — and therefore can’t afford to lose an extra $56 to interest.

3. You’re about to start working a side hustle that’ll keep you busy

If you’re doing fine financially and don’t have credit card debt, there’s nothing wrong with paying for extras like cable — even if it’s only something you watch on occasion. But if you’re gearing up to start a side hustle that’s likely to keep you very busy in the coming months, then it could make sense to cancel that service.

If you’ll be working most nights and weekends, how much TV are you going to have time to watch? You might as well shed the expense and free up the room in your budget.

Now if your side hustle is temporary (say, you’re aiming to work it for the rest of the year to save for a specific goal), one thing you can do is cancel cable now, replace it with a cheaper streaming service, and then sign up again once your side gig is over. If you let at least six months lapse on your cable service, you may be eligible for a new customer discount or promotion when you sign up again.

If you’ve had cable for years, it can be hard to cut the cord. But that’s the absolute right move if any of these situations applies to you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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Bookkeeping is not for the faint of heart, and messy books can happen to anyone. Here’s a faster way to clean yours up. [[{“value”:”

Being an entrepreneur can mean having to be responsible for tasks that you might not be very good at. Case in point for many: keeping the books. Although it’s a far more straightforward process now that we’ve got the help of so many great software programs, there’s something special about bookkeeping that fills the average human mind with the inkiest of dread, even when everything is going right.

When that dread has turned into procrastination and that procrastination into messy books, well, it can feel like a struggle to even begin thinking about tackling the problem.

Chin up, fellow small business owners — all is not lost! You can recover from this, and I’ll show you how.

Step one: Find the damage

As embarrassing as it is to admit, I’ve been in this situation myself. My dog had just been diagnosed with cancer and I had a very strong emotional response that resulted in my not keeping on top of tasks for a while. It was just long enough that I created a problem that was not great, but not so long that I couldn’t dig out of it on my own.

But I can tell you from experience that the very first thing you have to do is stop making things worse, and deconstruct your bookkeeping. If you know where you went wrong, like I did, it’s easy to go back and basically start over from that point; if you don’t, you have more digging to do. If you can’t find the problem, you’ll want to skip the DIY and hire an expert, as these issues tend to snowball rapidly.

Step two: Make a copy

When you identify where things went wrong, make a copy of your files. Whatever you use for bookkeeping, copy it, and set the copy aside for safekeeping. You’ll need to take your working files and erase literally everything to the point where you went sideways. I know, I know, breathe through the anxiety.

It’s a lot easier to go back to your original sources of truth than it is to try to reconcile everything, though, I promise. Have your bank account records handy, have your receipts there (this may be contained in your document copy), and get your tax records out, too, if you want. Depending on what you track in your books beyond the basics, you may need additional information. For example, I also track billable hours so I can compare my efficiency month to month.

Don’t stress if you’re missing things that don’t really matter to your taxes. You may have to accept that, for example, you can’t track a key performance indicator (KPI) that’s related to your bookkeeping and that you keep with it (my billable hours, for example), and just not have that data. It won’t really affect anything beyond your personal metrics anyway.

Step three: Data entry

Surrounded by your comforting pile of data, you can now rebuild your books from the point where they went sideways. Enter all the things you need: incoming money, receipts, payroll, subscriptions, tax payments, and so forth. This may take a good part of the day, maybe even two days, depending on how far back the problem occurred and how fast you are with the data entry, but stick with it.

Once you’ve entered all the data as you have it, take one last effort for good measure and reconcile everything. This isn’t strictly necessary, but if you’ve been entering data for a day or two, you may well have made a mistake in all the tedium. You want to begin again right, so take the time to make sure you’re square.

Step four: Maintain your books

Step four is not really a repair step, as you fixed your books in step three. This one is about not going off the rails again. In step four, you get to decide how to move forward with your bookkeeping. Maybe you can simplify your accounting in some way, like leaving out extra data such as which department each receipt goes to, to make it easier to maintain long term.

For example, I don’t have as many transactions as many business owners, since I’m a freelance writer. So I adjusted my spreadsheets to reflect what I actually needed for my taxes. I find that people who use spreadsheets often give themselves way too much bookkeeping homework, and that’s what I was doing for sure.

You may also want to consider switching from a spreadsheet to one of many accounting software packages that can help you better prioritize what data is really needed and what is just a lot of extra noise.

Moving forward from your messy books

After you’ve fixed your books, you can choose to continue to maintain your own records, but set aside designated time every day or once a week to take care of them so they don’t get forgotten. You can also hire someone to do your bookkeeping for you, but you’ll still need to give them the information they need, and if your records are limited like mine, it may be actually more time consuming to farm this task out.

Whatever you do, don’t feel bad that your bookkeeping fell by the wayside. It happens. Your goal from here on out is to keep it lean and clean.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Aldi can be a big source of savings. Read on to see why you might be missing out. [[{“value”:”

Grocery prices are up 1.1% from a year ago, as per the most recent Consumer Price Index. That may not seem like such a huge deal, but in my experience, stocking my fridge and pantry is as expensive as it’s ever been. And so it pays to be strategic about your grocery shopping and seek out ways to save money on it.

One tactic you may want to employ is shopping at Aldi. The store is known for its low grocery prices, and you may find that shopping there eases some of the strain on your budget. But if these signs apply to you, it means you may not be taking full advantage of what Aldi has to offer.

1. You refuse to buy brands you’re not familiar with

Most of the products on Aldi’s shelves are made by brands you’ve probably never heard of outside of Aldi. But being picky about brands isn’t going to serve you well if you’re looking to save money on food.

The whole reason Aldi is able to offer such competitive prices is that it stocks its shelves with lesser-known brands with smaller advertising budgets and passes the savings along to consumers. So before you write off the idea of buying brands you’re not familiar with, give some a chance — especially in the context of products like grains and pasta that are pretty hard to mess up.

To be clear, I’m not suggesting that you load a cart with products you’ve never tried before. Rather, ease your way in. Buy peanut butter and snack cakes this week and see how well-received those products are in your household, and then take it from there.

2. You’re skipping the middle aisle

Aldi’s middle section may not contain grocery products at all. But that doesn’t mean you shouldn’t have a look. That section is generally loaded with new or seasonal finds that may fulfill a need of yours, whether it’s kitchenware or another essential product for your home.

Of course, one thing you don’t want to do is load up on random Aldi products and bust your budget in the process. But it pays to take a look in case there’s a specific item you already happen to have a need for.

3. You’re giving up after a disappointing visit

One issue I’ve run into in the course of shopping at Aldi is that the inventory is not always consistent. One of the main things I like to buy at Aldi is produce. But there have been weeks when the store had no cucumbers, or tomatoes, or strawberries — items my household eats on a regular basis.

It’s definitely frustrating to go shopping for groceries and fail to get everything on your list. But don’t give up on Aldi just because your first visit, or one specific visit, was disappointing.

It may just be that you went to Aldi on an off week, or that you happened to visit right before a restock and were welcomed by largely bare shelves. If your first Aldi outing was a bust, at the very least, give the store one more chance before writing it off.

Shopping at Aldi could help ease the burden of expensive grocery costs. So it pays to make the most of your Aldi trips as best as you can.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Unlock the ultimate travel hack with our guide to matching airline status across multiple carriers. Read on to start flying better now. [[{“value”:”

Flying high isn’t just about getting from point A to point B anymore. It’s about the perks that can add a little boost to your personal finances. We’re talking free upgrades, lounge access, priority boarding, and that coveted extra legroom. For frequent flyers, airline status is the golden ticket.

But what if I told you there’s a way to multiply those benefits across multiple airlines? Yes, you heard right. With a little know-how, you can match your status from one airline to several others. Ready to unlock the ultimate travel hack?

The basics of status matching

First things first, what exactly is status matching? In the simplest terms, it’s when one airline grants you a comparable status based on the elite status you hold with another airline. This isn’t a one-size-fits-all process, as different airlines have their own rules and requirements. But the potential payoff is massive. Imagine having elite status benefits not just with your primary airline, but also with others in its alliance or even competitors.

Step-by-step guide to status matching

Here are the steps to take if you want to try this hack.

1. Research your options

The journey starts with a bit of homework. Not all airlines offer status matching, and those that do often have specific periods or promotions for it. A quick Google search can reveal which airlines are currently offering status matches and what they require. Websites like StatusMatcher.com and Flyertalk forums are also great resources for up-to-date information.

2. Prepare your documentation

Once you’ve identified potential airlines, it’s time to gather your evidence. Airlines typically require proof of your current status, which might include a screenshot of your account, a copy of your membership card, or recent travel history. Be thorough — missing information can delay or derail your match request.

3. Submit your request

Most airlines allow you to submit a status match request online. Some may require you to email customer service directly. Fill out the forms meticulously, attach your documentation, and don’t forget to include a polite, concise message explaining why you’re requesting the match. Remember, you’re essentially asking for a favor, so using a bit of courtesy can go a long way.

4. Wait for approval

Patience is key here. Approval times can vary from a few days to several weeks. Keep an eye on your email for any follow-up questions or, hopefully, your approval notice. In the meantime, continue to enjoy your existing benefits while you wait for your new status to kick in.

Maximizing your matched status

Here’s how to make the most of matched airline status.

1. Leverage alliances

Airline alliances like Oneworld, SkyTeam, and Star Alliance can be your best friends in this process. Matching status with one airline in an alliance can often grant you reciprocal benefits across all member airlines. This means even more lounge access, priority services, and potential upgrades across a wider network of airlines.

2. Take advantage of promotions

Airlines occasionally run promotions that can help you elevate your matched status even further. Keep an eye out for double status miles offers, fast-track promotions, or bonus point events. These can help you climb the status ladder more quickly and expand your benefits.

3. Plan your travel strategically

To take full advantage of your new status, plan your trips around airlines where you’ve matched status. This ensures you’re maximizing the benefits you worked hard to get. Whether it’s choosing a different airline within the same alliance or switching carriers for specific routes, strategic planning can make a significant difference.

The pitfalls to avoid

Watch out for these mistakes!

1. Ignoring fine print

Always read the fine print. Some airlines offer temporary status matches that require you to meet certain criteria within a specific timeframe to maintain the benefits. Be sure you understand the terms and are prepared to meet any requirements.

2. Overestimating benefits

While status matching can provide great perks, not all benefits will transfer equally. For example, free checked bags or upgrades might not always be available on partner airlines. Manage your expectations and know exactly what you’re getting with each match.

3. Neglecting your primary airline

Don’t forget about your primary airline in the excitement of matching status. Keep flying with your main carrier to maintain and elevate your status there. Balance is key to ensuring you don’t lose out on your original benefits while chasing new ones. You might consider opening an airline credit card with your preferred carrier.

Status matching is a powerful tool in a frequent flyer’s arsenal. With the right strategy and a bit of patience, you can unlock a world of perks across multiple airlines, making every trip more comfortable and enjoyable. So, next time you’re jet-setting around the globe, remember this ultimate hack to elevate your travel experience.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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Millionaires have good financial habits you can imitate. Read on to learn how to improve your finances with a few simple changes. [[{“value”:”

The other day, my son and niece were playing outside and came across a $1 million bill. They’re both young enough to think that maybe, just maybe, it could be real.

As they were trying to determine whether they had struck it rich, my son took the bill, put it up to his nose, and gave it a good sniff. “Nope, it’s fake. It doesn’t smell like real money,” he said.

We can all relate to being disappointed that we haven’t earned our riches yet, but there are some practical habits of millionaires we can follow to improve our finances. Here are five of them.

1. They avoid debt

Having debt can be one of the biggest obstacles to building wealth. When you accumulate a lot of debt, you’ll spend much of your income repaying it instead of investing it in assets.

While not all debt is equal (the vast majority of homeowners have mortgage payments), one of the worst is high-interest debt held on credit cards. The average American has $7,951 in credit card debt and is paying an astonishingly high interest rate of 24.8%.

If you make monthly payments of $350, it will take you more than three years to pay off that balance, and you’ll have paid $2,756 in interest. Avoiding debt is difficult, so start here if you need some help.

2. They invest their money

For most of my young adult life, I thought investing money was only for rich people. I didn’t realize that I could take small amounts of money and invest it, eventually earning far more than my original amount.

Where some people get tripped up is when they think they can save their way to wealth. In reality, you have to take on some risk to let your money grow.

The good news is that investing your money is easier than ever these days. You can open a brokerage account and buy a fund that tracks the S&P 500 without needing any investing experience. With a historical rate of return of 10.2%, the stock market is a fantastic place for building wealth over time.

3. They avoid lifestyle creep

Billionaire investor Warren Buffett famously drives used cars. His current vehicle of choice is a 2014 Cadillac STS that he got a good deal on because it had hail damage. Now that’s frugal.

Lifestyle creep, where you continue to expand your spending on goods as your income goes up, tempts us all. Cars, homes, clothes, and travel are easy to spend on as we make more money over time (and even if we don’t).

I haven’t been the perfect example of this, but I buy many things used, including my car, backyard grill, and even the Xbox I got my kids a few years ago. Taking this frugal approach helps lower my expenses and keeps my spending in check.

4. They find additional income streams

While you can build wealth by working a day job and setting aside money to invest, many millionaires speed up the process by creating additional income streams.

This may involve investing in a rental property, starting a side business, or using their skills to sell online courses. While there are many different avenues to choose from, the important part is remembering that finding even one way to make additional income can significantly improve your finances.

About 20% of American households earn some form of passive income, and of those who do, the average amount is $4,200 annually.

5. They have an emergency fund

While it may seem obvious that millionaires have money saved for a rainy day, you don’t have to be rich to follow their advice.

If you can only set aside $25 per month, start there. Aim to save a starter sum of $1,000 in your emergency fund so that the next time your car breaks or you need to replace the water heater, you have a small cushion of cash to lean on.

With many savings accounts currently paying annual percentage yields (APYs) above 5.00%, you can easily earn a decent return on your emergency fund right now.

Celebrate the wins

Having goals to earn more money, build your investment portfolio, or live frugally are all great. Just remember that even small moves can add up quickly.

If you don’t have an emergency fund, start there. Don’t worry about investing your money until you have some cash set aside for a rainy day. Similarly, if you have debt to pay off, focus on that first and don’t worry about trying to create additional income streams.

Start small and celebrate your financial wins. But feel free to keep an eye out for any $1 million bills you see on the ground.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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